A couple of weeks ago, I was chatting with the CEO of a VC firm who asked me what his portfolio companies should do differently when building their brand reputations. This question came up as we’ve both observed and agreed that most startups don’t do this very well.
There are various reasons why this may be the case — from underestimating the importance of building and nurturing brand reputation, thinking that this is important only when they are at a later stage, deprioritising this critical work due to the lack of funding, to simply not having the time to focus on this.
Here’s what I shared with this CEO:
Every startup, regardless of the stage it is at, needs an integrated and holistic communications strategy. This is particularly so for startups that are planning to raise funds or when they are expanding to new markets. Building a brand reputation takes time, resources, patience, investment and discipline.
Simply put, building a brand reputation that consistently resonates with diverse audiences and stakeholders is a full-time job. It is not something that can be hurried or done on the fly.
Also Read: Building trust through partnership: How collaboration enhances reputation
A strong communications strategy ensures consistent, clear, and compelling messaging that are needed to build and nurture reputations.
It can help with:
- Building and establish the startup as a credible and trustworthy entity in the eyes of investors. This involves clear and consistent messaging that aligns with the company’s vision, mission, and values. This also reminds them that what they claim should be translated into their actions.
- Ensuring that the startup’s message is tailored to different stakeholders (e.g., investors, customers, partners). This approach increases the relevance and impact of the communications, making it more likely to resonate with potential investors.
- Investors are not just interested in numbers; they want to know the story behind the startup. A communications strategy helps in crafting a compelling narrative that speaks about the startup’s reason for existence, its unique value proposition, market potential and growth strategy.
- Ensuring that the startup’s messaging is communicated consistently across all its audience touch points – eg website, social platforms, interviews and other media engagement, speeches, investor pitch docs, job portals, in-app / in-store, newsletters, presentations, etc. This consistency reinforces the startup’s brand and message, reduces confusion and in the process, making it more memorable to their key audiences.
- Having a well-planned and ready-to-go crisis communications strategy, ensuring that the startup can effectively manage any negative publicity or challenges that arise, thereby protecting its reputation and investor confidence.
As Warren Buffett very succinctly reminded his top managers across Berkshire Hathaway’s 80+ subsidiaries in 2010, “We can afford to lose money – even a lot of money. We cannot afford to lose reputation — even a shred of reputation.” To him, reputation is, and always will be, the cornerstone of a successful business.
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